1] With Bank Mortgage Life Insurance, the premium stays the same, even though the amount of your mortgage decreases over time, so you will be paying more premium on less coverage, over time! However, with Personal Life Insurance, your coverage remains the same and so does your premium, so “You get what you pay for!”. And if you want to purchase more insurance, to cover more than the mortgage balance, you can!
2] Bank Mortgage Life Insurance usually costs more than Personal Life Insurance! At PML we can shop the market to get you the best deal, and we always get the best deals!
3] With Bank Mortgage Life Insurance, there is no choice of the type of coverage, it is considered a reducing term life insurance plan. With Personal Life Insurance, you will have multiple options to choose your plan type, like “Term Life to 100” or “Permanent Life Insurance!
4] With Bank Mortgage Life Insurance, the proceeds go to directly to pay the balance of the mortgage, nothing goes to the beneficiaries. With Personal Life Insurance, the FULL amount of the coverage is paid out upon death, and not just to cover the balance of the mortgage…any remainder goes to the beneficiaries of your choice! And you can have multiple people covered, even if they are not on the mortgage title!
5] Bank Mortgage Life Insurance is NOT portable, if you change lending institutions, you MUST re-apply for coverage! With Personal Life Insurance, your insurance is portable, even if you change lending institutions.
6] With Bank Mortgage Life Insurance, THERE IS NO UNDERWRITING UPFRONT, WHICH MEANS CLAIMS CAN BE CONTESTED AT DEATH WHEN YOU NEED IT THE MOST! AND THE BANKS CAN AND DO DENY LIFE INSURANCE CLAIMS! SO, YOUR MORTGAGE MIGHT NOT BE PAID OFF, EVEN THOUGH YOU’VE PAID FOR THE INSURANCE!!! With Personal Life Insurance, your insurance is guaranteed and can NEVER be canceled!
7] With Bank Mortgage Life Insurance, coverage automatically ends, by the end of the 69th year, which means you’re left with NO coverage! And if you still have a balance, you won’t be covered! With Personal Life Insurance, the term of the plan is determined by you, which can be indefinite…so no expiry date!